Aldermore Bank plc announced on Monday that it plans to float on the London Stock Exchange in October. Analysts say the IPO (initial public offering) would value the bank at between ₤800 million and ₤900 million.
The net proceeds from the sale of new shares will be used to help medium-term growth. The company says it aims to raise ₤75 million in gross proceeds.
Some Aldermore directors, as well as other shareholders including equity firm AnaCap, say they will sell some of their existing stake in the bank. The shares are being offered to institutional investors.
Aldermore Bank plc is a retail bank that provides financial services to medium-sized and small businesses (SMEs). It was founded in 2009.
The financial institution provides retail and business savings, asset and invoice finance, as well as residential and commercial mortgages.
Aldermore is covered under the UK Financial Services Compensation Scheme for savings worth up to ₤80,000. It is not an affiliate of any other financial institution.
Aldermore Bank plc was founded in 2009.
In order to keep costs down, it does not have a physical branch network.
Phillip Monks, CEO of Aldermore Bank plc, said:
“Aldermore is a modern, legacy-free bank that challenges the established view on what banking should be. We deliver straightforward products and sector expertise to customers in underserved market segments that offer attractive risk-adjusted returns.”
“Our offering benefits from modern digital infrastructure and proven distribution channels and is underpinned by a diversified funding base and robust capital position.”
Mr. Monks added that now that the company is five years old, going public is a natural progressions.
Recent backers Lansdowne and Toscafund are likely to increase their current 8.3% shareholding by purchasing more shares in the IPO.
Aldermore will join a number of small banks, such as OneSavings and TSB, which floated earlier this year. Virgin Money says it plans to hold an IPO later this year.
Aldermore’s first-half profits more than tripled to £18.6 million in H1 2014, from £5.3 million in H1 2013. Deposits increased by 11% to £13.86 billion, while its loan book rose 19% to £4 billion.